Protonix was created by a company that was later acquired by Takeda, It had been licensed to a company that Pfizer purchased. In 2007, Protronix sales hit $1.9 billion, but declined sharply after generic versions hit the market. The medication’s U.S. patent didn’t expire until 2011.

The generic makers had hoped that legal actions would overturn the patent or produce a settlement with the patent holders, but U.S. courts upheld the patent. A new trial was set to begin to establish damages.

Pfizer said it will receive 64% of the settlement. Teva indicated that it will take a $930 million second-quarter charge due to the agreement. Sun Pharmaceutical Industries is based in India.

Shares of Takeda climbed more than 1% in over-the-counter trading on Wednesday, while Pfizer shares rose fractionally and Teva fell almost 1%.